Utah veteran taxes

Military retired pay in Utah

Exempttax year 2025Sources 1, 2, 3

Utah offsets its income tax on military retired pay with a nonrefundable Military Retirement Credit equal to the flat tax rate times the taxable military retirement pay included in adjusted gross income (Utah Code § 59-10-1043): 4.5% for tax year 2025, and 4.45% under Utah Code § 59-10-104 from January 1, 2026. The pay stays in adjusted gross income; the credit offsets the tax on it. The credit cannot be carried forward or back and cannot be claimed together with the general Retirement Credit.

Survivor Benefit Plan annuities

ExemptSources 1, 2

The Military Retirement Credit covers survivor benefits: Utah Code § 59-10-1043 defines military retirement pay to include survivor benefits, meaning the retired pay portion of the benefits described in 10 U.S.C. 1447 through 1455, and the Tax Commission’s instructions include retirement pay received by a survivor of a deceased service member. Survivors of a member who died on active duty or in training use the separate Military Survivor Benefits Credit instead.

Property tax relief for disabled veterans

Exemption or creditSources 4, 5, 6, 7

Utah exempts from property tax an amount of the taxable value of a veteran’s primary residence equal to the veteran’s percentage of service-connected disability multiplied by the adjusted taxable value limit (Utah Code § 59-2a-501, effective January 1, 2026). The Tax Commission gives the maximum as $535,459 of taxable value; a veteran certified for individual unemployability is treated as 100% disabled, and no exemption is allowed below 10%.

• The exemption may also be applied to tangible personal property held for personal use, such as motor vehicles.
• The veteran applies to the county by September 1 with discharge papers and a statement of disability; once the county issues a receipt, a new application is needed only after changes such as a new disability percentage, a change of ownership or occupancy, or applying the exemption to personal property (Utah Code § 59-2a-502).
• A veteran with a 100% permanent and total service-connected rating may apply before buying a residence, with a purchase contract.

Vehicle registration for disabled veterans

Fee waiver or discountSources 7, 8, 9

Utah’s Disabled Veteran plate carries the standard $8.25 plate fee and $5.00 special group plate fee, but a veteran with a disability can apply the property tax exemption to a vehicle’s age-based uniform fee or property tax, the amount shown on the vehicle registration renewal notice: the county completes Form PT-032 (Veteran with a Disability or Blind Abatement of Motor Vehicle Uniform Fees and Property Tax), which the veteran takes to the motor vehicle office.

• The Disabled Veteran plate requires a letter from the Utah Department of Veterans and Military Affairs or another U.S. military entity certifying the veteran’s disabled status, and it does not give disabled parking privileges.
• The plate may be transferred to the surviving spouse of a disabled veteran while the surviving spouse remains unmarried.